Accredited Standards Committee X9, Accredited Standards Committee X9, Inc.Inc.

An Introduction toAn Introduction toFinancial Industry Global Financial Industry Global

StandardsStandards

AgendaAgenda

Standards and standards typesStandards and standards types X9—the organizationX9—the organization ANSI’s roleANSI’s role ISO’s roleISO’s role International connection – managementInternational connection – management How should your organization get involved?How should your organization get involved?

What are Standards?What are Standards?

How does government define Standards?How does government define Standards? Types of StandardsTypes of Standards

Types of StandardsTypes of Standards

Four types of StandardsFour types of Standards

Voluntary Standards

Mandatory Standards

Performance SpecificationStandards: Management

System Standards

Definition Standards

What is X9?What is X9?

X9 was granted ANSI accreditation in 1984.X9 was granted ANSI accreditation in 1984. X9 is the premier standards developer for the X9 is the premier standards developer for the

Financial Services industry.Financial Services industry. X9 is a leader in moving its standards globally for X9 is a leader in moving its standards globally for

adoption as ISO standards.adoption as ISO standards.

X9’s ObjectivesX9’s Objectives

Develop, establish, maintain, and promote Develop, establish, maintain, and promote standards for the Financial Services industry to standards for the Financial Services industry to facilitate the delivery of financial products.facilitate the delivery of financial products.

Focus on current and future standards needs of Focus on current and future standards needs of the Financial Services industry.the Financial Services industry.

Participate , promote and grow the development Participate , promote and grow the development of international standards.of international standards.

X9’s ValueX9’s Value

Provides leadership in financial Provides leadership in financial standardization globallystandardization globally

Accredited international SecretariatAccredited international Secretariat Payment Standards (including checks)Payment Standards (including checks) Retail/card processing Standards Retail/card processing Standards

(domestic and international)(domestic and international) Lead in industry use of Standards to Lead in industry use of Standards to

secure financial transactions.secure financial transactions. Now leading ‘payment model’ Now leading ‘payment model’

internationally internationally

What is ANSI?What is ANSI?

The American National Standards Institute is based The American National Standards Institute is based in Washington, DC, and serves as the coordinating in Washington, DC, and serves as the coordinating

organization for the US voluntaryorganization for the US voluntary Standards system.Standards system. ANSI is a federation of industry firms, Standards ANSI is a federation of industry firms, Standards

developing organizations, trade associations, developing organizations, trade associations, professional and technical societies,professional and technical societies,government, labor and consumer groups.government, labor and consumer groups.

ANSI serves as the US member body of ISO.ANSI serves as the US member body of ISO.

What is ANSI’s Role, what does ANSI add?What is ANSI’s Role, what does ANSI add?

ANSI does not develop StandardsANSI does not develop Standards Facilitates development of American National Facilitates development of American National

Standards.Standards. Accredits Standards developers.Accredits Standards developers. Examines developers processes.Examines developers processes. Coordinates and represents Standards in the USCoordinates and represents Standards in the US Oversees the creation of StandardsOversees the creation of Standards Assess conformance to ANSI rulesAssess conformance to ANSI rules Audits accredited organizations like X9Audits accredited organizations like X9 Member body of ISOMember body of ISO

The X9 OrganizationThe X9 Organization

X9 is organized through committees and X9 is organized through committees and membership levels.membership levels.

X9’s Board/consensus body acts as oversight and X9’s Board/consensus body acts as oversight and management group, determines the acceptance management group, determines the acceptance of a draft standard to be recommended to ANSI of a draft standard to be recommended to ANSI for acceptance as an American National for acceptance as an American National Standard.Standard.

The consensus body also is the US vote to ISO The consensus body also is the US vote to ISO TC68TC68

Board acts as the consensus body voting on Board acts as the consensus body voting on acceptance/rejection of X9 standards.acceptance/rejection of X9 standards.

Within the Board there are five management committees Within the Board there are five management committees including:including:

Board OrganizationBoard Organization

Executive Committee Finance Committee

Marketing andMembership

Policy andProcedures

Board of Directors Board of Directors (consensus body) (consensus body) SUBCOMMITTEESSUBCOMMITTEES

Payments Credit Securities Data Security

• E-SIGN • CODES

• MESSAGES

• CHECKS

•CORPORATE

• RETAIL

CRYPTOGRAPHY

•APPLICATION•CARDHOLDER

AUTHENTICATION

X9 Subcommittee StructureX9 Subcommittee Structure

Currently, the X9 organization consists of four Currently, the X9 organization consists of four subcommittees.subcommittees.

Each subcommittee has domain over subject Each subcommittee has domain over subject areas—payments (cards/checks/corporate) credit, areas—payments (cards/checks/corporate) credit, securities, and security—important to industry.securities, and security—important to industry.

Working groups are a subset of each Working groups are a subset of each subcommittee they are organized when needed subcommittee they are organized when needed to develop standards for approval by the to develop standards for approval by the balanced consensus body.balanced consensus body.

Working GroupsWorking Groups

Working Groups are established by the Board or Working Groups are established by the Board or Subcommittee to deal with specific technical areas.Subcommittee to deal with specific technical areas.

Working Groups contain the expertise to develop Working Groups contain the expertise to develop standards answers to issues facing the industry. standards answers to issues facing the industry.

They may reorganize, become active to meet new They may reorganize, become active to meet new industry challenges or upon completion of a body of industry challenges or upon completion of a body of work become inactivework become inactive

Working groups are not permanent committeesWorking groups are not permanent committees

Who is ISO?Who is ISO? ISO is a network of the national standards ISO is a network of the national standards

institutes of 157 countries, on the basis of one institutes of 157 countries, on the basis of one member per country, with a Central Secretariat in member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the Geneva, Switzerland, that coordinates the system. See system. See www.iso.chwww.iso.ch

ISO is a non-governmental organization: its ISO is a non-governmental organization: its members are not, as is the case in the United members are not, as is the case in the United Nations system, delegations of national Nations system, delegations of national governments.governments.

What is TC68 to ISO (ISO TC68)?What is TC68 to ISO (ISO TC68)? TC68 is one of 230 – ISO technical committees – TC68 is one of 230 – ISO technical committees –

the only dedicated to financial standardsthe only dedicated to financial standards TC68 has produced more than 70 universally TC68 has produced more than 70 universally

implemented financial standards – ISO has implemented financial standards – ISO has produced more than 25,000 international produced more than 25,000 international standardsstandards

Why is X9 involved in ISO and how can Why is X9 involved in ISO and how can you participate? you participate?

• Make an informed choice in which standardization projects Make an informed choice in which standardization projects your company should participate;your company should participate;

• Influence international standards development in such a way Influence international standards development in such a way that the resulting standards are fit for your company to achieve that the resulting standards are fit for your company to achieve its business targets;its business targets;

• Define difficulties in relating your participation directly to the Define difficulties in relating your participation directly to the business goals of your company;business goals of your company;

• Prioritize standardization activity your company should Prioritize standardization activity your company should participate in;participate in;

• Alternative approaches to standards development in case of Alternative approaches to standards development in case of common interests or conflicting interests;common interests or conflicting interests;

About ISO TC68About ISO TC68

TC68 is ISO’s designated standards development TC68 is ISO’s designated standards development group for the Financial Services industry.group for the Financial Services industry.

X9 (under ANSI) holds secretariat of TC68 and X9 (under ANSI) holds secretariat of TC68 and SC2, X9 members are active participants in SC2, X9 members are active participants in developing and forwarding global standards.developing and forwarding global standards.

Presently, the technical subcommittees under Presently, the technical subcommittees under TC68—Security Management, Securities and TC68—Security Management, Securities and Related Instruments, and Core Banking.Related Instruments, and Core Banking.

Currently leading 20022 effort on financial Currently leading 20022 effort on financial messaging, including payments, securities, messaging, including payments, securities, trade/finance, e-invoice and more.trade/finance, e-invoice and more.

ISO Technical Committee TC68Financial Services

UNIFIRMG

SEGPayments

SEGSecurities

RA

SEGFX

RMG members nominated by P-member countries and A-liaison organisations

SEG members nominated by all member countries and liaison organisations

SC7Banking

SC4Securities

SC2Security

WG4UNIFI Review

SEGTrade Services

CARDSEG

ISO Technical Committee 68 ISO Technical Committee 68 Financial Services – reporting Financial Services – reporting committeescommittees Subcommittee 2- SecuritySubcommittee 2- Security Subcommittee 4- SecuritiesSubcommittee 4- Securities Subcommittee 7- Core BankingSubcommittee 7- Core Banking 20022 RMG reports to TC68 as does 20022 RMG reports to TC68 as does TC68/WG4 revising ISO 20022TC68/WG4 revising ISO 20022

Industry Payback – why join, why Industry Payback – why join, why participate?participate? ““X9 doesn’t cost, it pays.”X9 doesn’t cost, it pays.” Influential in standard processes both Influential in standard processes both

domestically and internationally.domestically and internationally. Skilled at development of voluntary consensus-Skilled at development of voluntary consensus-

based standardsbased standards Works with organizations not often part of the Works with organizations not often part of the

industry.industry. Needs total participation from industry.Needs total participation from industry.

Additional InformationAdditional Information

Contact ASC X9, Inc.Contact ASC X9, Inc.1212 West Street, Suite 2001212 West Street, Suite 200

Annapolis, MD 21401Annapolis, MD 21401410 267-7707410 267-7707www.x9.orgwww.x9.org